How To Start Binary Options Trading

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

Contents

Binary Options Day Trading in Russia 2020

Binary options trading hinges on a simple question – will the underlying asset be above or below a certain price at a specified time? If so, you can make substantial profits with one of the most straightforward financial instruments to trade. But what exactly are binary options, and what are their benefits and drawbacks? This page will answer those questions, as well as detailing how to start day trading binary options, including strategies, tips, and regional differences to be aware of. Use the broker top list to compare the best binary brokers for day trading in Russia 2020.

Binary Brokers in Russia

What Are Binary Options?

Firstly, let’s have a look at how it all works. Put simply, binary options are a derivative that can be traded on any instrument or market. They appeal because they are straightforward. You know precisely how much you could win, or lose before you make the trade. No complex maths and calculator is required. This is why they are also known as ‘all or nothing’ trades.

If you anticipate news announcements, quarterly reviews, or global trends, then you may be able to make an accurate determination as to whether the price is going to increase or decline at a certain point in the future, turning a profit.

There is a whole host of derivatives to choose between. You can trade binary options on commodity value, such as aluminium and crude oil. You can opt for a stock price, such as Amazon and Facebook. There are foreign exchange rate options, including all the major and minor pairs. Even cryptocurrencies such as Bitcoin, Ethereum, and Litecoin are on the menu.

A Brief History

If you want to start trading binary options full-time, a detailed understanding of their origins will help. Binary or ‘digital’ options have been around for decades. Originally though, it was only large institutions and the fabulously wealthy that had access. However, 2008 saw the US Securities and Exchange Commission open the floodgates by allowing binary options to be traded through an exchange.

The internet and technology have since given the whole world access to these ‘digital’ options. As it stands, with low barriers to entry for savvy day traders and a simple to understand preposition, the demand for these digital trades will only increase.

Option Types

There are a number of different option types to choose from. The most popular types are listed in the brief glossary below.

  • Up/Down (High/Low) – The most simple and prevalent binary option. Will the price be higher or lower than the current price when the expiry time comes?
  • In/Out (Range or Boundary) – A ‘high’ and ‘low’ figure will be set. You are then making a determination as to whether the price will finish within or outside of these boundaries.
  • Touch/No Touch – Levels will be set that are either higher or lower than the current price. You then enter a position as to whether the price will ‘touch’ these levels between the time of trade and expiry. Payout will come as soon as the touch takes place.
  • Ladder – These are similar to up/down trades. However, instead of using the current price, the ladder will have pre-determined levels that are staggered up or down. These normally demand a substantial price move. The flip side of this is returns will frequently exceed 100%. Although it is worth noting, both sides of a trade are not always available.

Binary options

Expiry Times

Another important component of binary options is expiry times. This is when the trade will end and the point that determines whether you have won or lost. These times can range from 30 seconds and 1 minute (turbos) to a full day (end of day), and even up to a whole year.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

As an intraday trader though, you will be more concerned with trading 5 and 30-minute binary options. Opt for binaries with 1 minute expiry times though and you have the ability to make a high number of trades in a single day.

Despite the somewhat negative reputation, the reality is binary options are legal. The majority of companies operate fairly. Opinions have been split because there are some out there that operate scams.

Regulation in certain regions has meant binaries have been withdrawn from the retail market. In the EU for example. But professional traders can still use them. In regions such as India and Australia, binary are legal – but traders should make sure they use a reputable broker, and read our section below on avoiding scams.

Scams & Frauds

The binary reputation has suffered from dishonest marketing and cybercrime. Too many unregulated brokers promise quick cash, whilst operating frauds. Regulators are on the case and this concern should soon be alleviated.

Binaries themselves are perfectly legitimate, but steer clear of ‘instant money’ promises, brokers that cold call, and celebrity endorsements, plus any claims that you can ‘start trading binary options for free’.

So it isn’t a question good or bad, it’s simply a question of being alert to the dangers and knowing what to look out for. If you’re unsure about a broker, ask the question in a live trading room to check they’re properly regulated.

Binary Options Vs CFD Trading

Although in some ways similar, there remain some crucial differences between binary options and CFDs. With CFDs, you have potentially unlimited risk. If the price of the asset moves significantly, the value of the trade can grow very large, very quickly – for better or worse.

Whereas binary options work slightly differently. Whilst you are still investing without owning the asset in question, the gain and loss rate is fixed. With a call option, it doesn’t matter if the price rockets, you retain the same percentage as if it rose by just a couple of pips.

Likewise, if the price sinks to zero, you’ll only lose what you put in. So, to define the difference – with binary options you get fixed risk.

Having said that, just as if it was binary options versus forex trading, you are restrained in your profit potential.

Why Trade Binary Options?

If you want to profit trading binary options, you need to first understand both their pros and cons. You need to make sure binary options will suit your trading style, risk tolerance, and capital requirements.

Advantages

There is a whole host of attractive benefits to trading with binary options. The greatest advantages have been outlined below.

  • Simplicity – Because you are making a determination on only one factor, direction, your bet is straightforward. The price can only go up or down. You also don’t need to concern yourself with when the trade will end, the expiry time takes care of that. Whereas in other markets, you may need a system to limit your losses, such as a stop-loss.
  • Fixed risk – Trade stocks, gold, and crude oil and you’ve got a vast number of factors to contend with, from slippage and margin to news events and price re-quotes. With binaries, your risk is kept to a minimum with far fewer parameters.
  • Trade control – Because you know what you may make or lose before you enter the trade, you have greater control from the start. Trade in stocks, for example, and you have no guarantee that your trade will make the entry price.
  • Profit potential – Compared to other trading, the returns in binaries are extremely attractive. Some brokerages promise payouts of up to 90% on a single trade. If you’re looking to make simple trades with large profit potential, binaries could well be worth a look in.
  • Choice – Rather than being constrained to a specific market, e.g. cryptocurrency or stocks, binary options gift traders the opportunity to trade instruments across virtually all markets, allowing you start currency, indices, and bonds trading if you so wish.
  • Accessibility –In the binary options game, it’s always the best trading hours somewhere on the globe. So, you can login at night, or on the weekends and join the groups of avid traders attempting to turn daily profits. Real-time charts are available for every market so if you’ve got the time you can invest 24 hours a day.

Risks

Whilst there are plenty of reasons to delve into trading on binary options, there remain several downsides worth highlighting:

  • Reduced trading odds – Whilst you can benefit from trades that offer in excess of 80% payouts, these are often when the expiry date is some time away from the trade date. If the odds of your binary trade succeeding are extremely high you may have to make do with reduced payout odds.
  • Limited trading tools – Whilst most brokerages offer advanced charting and analysis capabilities, trading tools for binary traders often fall short of the mark. Fortunately, there are other online sources for these graphs and tools, plus brokers are working swiftly to increase their offerings.
  • Price of losing – Your odds are tilted in favour of losing trades. Approximately for every 70% profit, the corresponding loss of the same trade would result in an 85% loss. This means you need a win percentage of at least 55% to break-even.
  • Risk management – Unlike other markets, brokers often set a trading floor, with minimum accounts a trader needs to enter the market. This means losing capital can happen with ease. Whilst a stocks broker may permit you to open an account with $250, trading micro-lots, most binary brokers won’t allow $50 trades. So, even with $250 in your account, just five trades that don’t go your way could see you sink into the red.

Binary Trading via Mobile App

How Does Trading Binary Options Work?

Trading binary options for beginners is straightforward. Simply follow the steps outlined below.

Step 1 – Find a broker

This is one of the most important decisions you will make. You need a broker that meets all your requirements and who will enhance your trade performance. But with so many options out there, how do you know what to look for?

If you’re high-frequency binary trading each day, the commission fees and costs will quickly rack up. You want to maximise your profits so look for brokers with a competitive and transparent fee structure, and remember, different asset classes pay out different amounts.

Deposit

One point worth investigating is rules around minimum deposits. Whilst some brokers will offer binary options trading with no minimum deposit, many will expect a deposit of close to $50, and some $100. A broker offering low minimum deposits is ideal if you’re strapped for cash. Trading binary with JC and GCI are good choices if you’re looking for low deposits.

Asset-Specific

Some brokers will specialise in certain assets. If you’re set on crude oil, it may be worth finding a broker that’s geared towards those binaries. You may benefit from relevant news feeds and the most prudent option choices available. Trading binary stocks with 212, for example, is ideal for those interested in stocks.

Regulation

With scams out there it’s important you check your broker is properly regulated by the relevant financial body, e.g. FCA, CySec, CFTC. Trading with 247 Binary Options, IQ option, and Binary.com are all safe bets.

Platform

Binary options platforms are your gateway to the market and where you’ll spend many hours a day. There are now many online trading platforms, so, make sure it’s easy to use and offers all the charts, patterns and tools you need to make smart and accurate trade decisions. For example, will you be trading binary options with candlesticks or more obscure charts?

Both Keystone and Nadex offer strong binary options trading platforms, as does MT4. Before you buy, conduct a thorough trading platform comparison and check reviews.

Reliability

Any problem could cost you time, and as an intraday trader, time can cost you serious cash. So, check the broker offers reliable support. Some brokers will offer 24/7 customer support through calls, live chat, and in a number of languages. Binary options trading with Etrade and 24 Option are smart moves if you want top quality support.

Trading apps

A growing number of people use mobile devices and tablets to enhance their trading experience. However, software for trading binary options varies hugely. So, it’s worth checking whether your broker offers cross-platform capabilities. Also, check the charting tools you need will work on your iOS or Android device. Binary options trading with IQ Option, for example, offers fantastic trading apps.

Extras

Many brokers will sweeten the deal with some useful add-ons. Some may offer free trading plans, courses, and lessons. So, find out first if they offer free courses online to enhance your trading performance. Some brokers will also offer free binary trading trials so you can try before you buy.

You could also benefit from trading bonuses, tips, the best strategy and trading signals reviews, plus free, practice demo accounts. Not to mention some brokers allow for binary options trading using Paypal. However, don’t be put off by no binary options trading deposit bonus, these can be a sign of potential scams.

Demo accounts

For newbies, getting to grips with a demo account first is a sensible idea. Funded with simulated money, you can try numerous assets and options. It’s the perfect place to make mistakes and learn before you put real capital on the line. In addition, you’ll find most free binary options demo accounts require no deposit, so you can start practicing whilst you save that initial capital.

There is no universal best broker, it truly depends on your individual needs. Some brokers offer minimum trades of just a couple of pounds, whilst others require hundreds or even thousands. The solution – do your homework first.

For more guidance on making the right choice, see our brokers page.

Step 2 – Choose An Instrument/Market

You can trade binaries in pretty much everything, including stocks, forex, indices, and commodities. You can bet on anything from the price of natural gas, to the stock price of Google. Opt for an asset you have a good understanding of, that offers promising returns.

Step 3 – Decide On An Expiry Time

As a short-term trader, you’ll probably be more interested in 30 seconds, 1 minute and end of day expiry times. You need to balance binary options trading volume with price movement. Whilst the more trades you make means greater profit potential, it’s better to make fewer and more accurate trades. Also, find a time that compliments your trading style.

Step 4 – Decide On Size

In the binary options game, size does matter. The greater your investment the greater the possible profit. On the flip side, remember the entirety of your investment is on the line. You need an effective money management system that will enable you to make sufficient trades whilst still protecting you from blowing all your capital.

Step 5 – Choose An Option

You will have any number of the options outlined above to choose from. Think carefully about how confident you are in your determination. Consider factors that will jeopardise your investment, and select an option that gives you the best chance of succeeding. Don’t automatically select a ladder trade because you want huge returns, consider which options are the relatively safe bets.

Once you’ve made that decision, check and confirm your trade. Then you can sit back and wait for the trade payout.

Demo Video

Below is a video explaining how to trade binary options on the platform of a leading provider:

Strategies

Binary trading strategies will differ from trade to trade. What may work for a ladder option in forex, may prove useless in a range option on gold. Having said that, there are two reasons you must have a strategy.

Firstly, a strategy prevents emotions interfering in trade decisions. Fear, greed, and ambition can all lead to errors. A strategy allows you to focus on the maths and data.

Secondly, a strategy allows you to repeat profitable trade decisions. Once you’ve found out how and why that binary option worked, you can replicate it to create consistent profits.

Building A Strategy

There are two crucial elements to your binary options trading method, creating a signal, and deciding how much to trade. The second is essentially money management. How do you go about determining these two steps then?

Step 1 – Creating A Signal

The signal will tell you in which direction the price is going to go, allowing you to make a prediction ahead of time. The two main ways to create signals are to use technical analysis, and the news.

Charts, Patterns & Indicators

If you can identify patterns in your charts, you may be able to predict future price movements. They rest on the idea that ‘history repeats itself’. You can start trading binary options using Heiken-ashi, other candlesticks, and line charts. Armed with charts and patterns, successful traders will build a strategy around their findings.

You can then build indicators into your strategy, telling you when to make a binary option, and which binary option you should go for. These technical tools can prove invaluable, so make sure your broker offers the features available to conduct thorough market analysis.

One of the great things about trading binary is you can use any number of your normal indicators, patterns, and tools to help predict future binary options movements. So, you can start trading with/using:

  • Support and resistance levels
  • Price action
  • Stochastic oscillators
  • MACD indicators
  • Trends
  • Babypips
  • Mirrors
  • Options close to expiry

For more detailed guidance, see our charts and patterns pages.

You can trade binary options without technical indicators and rely on the news. The benefit of the news is that it’s relatively straightforward to understand and use. You’ll need to look for company announcements, such as the release of financial reports. Alternatively, look for more global news that could impact an entire market, such as a move away from fossil fuels. Small announcements can send prices rocketing or plummeting.

If you can stay in the know you can trade your binary options before the rest of the market catches on. To do that you’ll need to be tuned into a range of news sources. You can browse online and have the TV or radio on in the background. Some of the most useful news sources in terms of trading information are:

  • Yahoo Finance
  • CNBC
  • Business Insider
  • Bloomberg
  • Financial Times

Step 2 – How Much You Should Trade

If you’re just starting off it’s often best to keep things simple. Trading the same amount on each trade until you find your feet is sensible. Below are 3 binary options trading strategies for both beginners and experienced traders.

Martingale Strategy

Binary options using the martingale trading strategy aim to recover losses as quickly as possible. To do this you’d trade larger amounts of money in the trades following a loss. So, you’d set an amount that you trade each time, say $250. However, if you lose on that $250, you’d bet $500 on the next trade. If the trade wins, you’ll already be back in the black, rather than being stuck around the break-even mark.

The problem with this strategy is that if you go on a losing streak you can lose a serious amount of capital in a short space of time. So, only use this strategy if you’ve got a relatively accurate means of making trade decisions. If you’re still in the trial and error stage, consider a different approach.

Percentage Strategy

A percentage based system is popular amongst both binary options traders and other traders. The idea is you specify a percentage you’re willing to risk. Between 1-2% is common. So, if you’ve got $10,000 in your account, and your risk value was 2%, you could trade $200 on a single trade.

If you have a greater risk tolerance and consistent results you may want to increase that risk margin to 5%. The benefit of this system is that you should never lose more than you can afford. This makes it an ideal approach to take if you’re new to trading on binary options.

Straddle Strategy

This example is best employed during periods of high volatility and just before the break of important news announcements. This technique can be utilised by traders of all experience levels. It gives you the capability to avoid the call and put option selection, and instead allows putting both on a specified instrument.

You aim to utilise put when the value of the instrument has risen, yet you think that it’s going to decrease soon. Once the descent has begun, place a call option on it, anticipating it to bounce back swiftly. You can also do it in the reverse direction. Simply place a call on the assets prices low and put on the rising asset value.

This significantly increases the chance of at least one of the trade options producing a profitable result. If you’re in a volatile market, this simple system could you see turn handsome profits. This works well as a binary options trading 60 seconds strategy, and will also cover expiry times of up to one day.

Bots & Algorithmic Trading

Once you have honed a strategy that turns you consistent profits, you may want to consider using an automated system to apply it. These robots usually rely on signals and algorithms that can be pre-programmed.

The bots then do all the leg work, trading options on your behalf. The plus side is they can make far more trades than you can do manually, increasing your potential profit margin. They can also trade across different assets and markets.

It’s worth investigating your brokers offering when it comes to auto trading and checking for robot reviews. Many allow you to build a program with relative ease. You can use your own entry points that rely on Bollinger bands, RSI/MFI patterns, and moving averages.

However, even when you’ve got your system up and running, you can’t go into trading binary options on autopilot, you need to stay tuned in. If any mistakes take place, you need to be there to remedy the problem. Technical crashes and unpredictable market changes can all cause issues, so stay vigilant.

Timing

Many binary option strategies pdfs fail to sufficiently consider time variables. Certain strategies will perform better with specific time options. You may want to look specifically for a 5-minute binary options strategy. Alternatively, trading 15-minute binary options may better suit your needs. So, whichever strategy above you opt for, ensure you take time into account.

Summing Up Strategy

Trading binary options with success rests on finding a strategy that compliments your trading style. So, consider the instrument you’re going to be trading. Then, employ an effective money management system and use charts and patterns to create telling indicators. Also, utilise news announcements to your advantage.

If you’re trying a new fence, gap, hedging, or any other binary strategy for the first time, why not try it on a trading practice account first? This will allow you to address any issues before you invest your own money.

For more detailed guidance, see our strategies page.

Education

Binary options trading 101; immerse yourself in educational resources. As Benjamin Franklin asserted, ‘an investment in knowledge pays the best interest’. The top traders never stop learning. The markets change and you need to change along with them.

To do that, utilise some of the resources detailed below.

  • Books & eBooks – There is a whole host of books and ebooks out there that can impart invaluable information on day trading binary options. You can benefit from the binary options trading knowledge of experts with decades of experience. The good thing about a book it is allows you to learn at a pace that suits you. One book that has made binary options trading easy is ‘Trading Binary For Dummies’, by Joe Duarte.
  • Video tutorials & seminars – Engaging and easy to follow. There are numerous online video tutorials out there that can walk you through making a trade. With seminars, you’ll also be able to have questions answered and the binary options trading basics explained, plus some brokers offer weekly seminars to keep you up to date with market developments.
  • PDFs & instruction guides – These will give you a clear breakdown of steps that you can follow and apply. The best part is you can find plenty online that are totally free and easy to download, whether you’re using Android, Windows, or iOS. The trading binary options ‘Abe Cofnas’ pdf is particularly popular.
  • Forums & chat rooms – This is the perfect place to brainstorm ideas with binary options gurus. You can benefit from recommendations and learn in real-time whilst investing in your binary options. You can also swap live chart screen grabs to get a feel for other binary methods and tactics.
  • Newsletters & blogs – These are brilliant for keeping up to date with upcoming developments that may affect your markets. Plus, you could hear about binary options competitions (yes, they really do exist).
  • Copy trading – This is when social trading networks/platforms are combined with binary trading tools. You can follow experienced traders, analyse their strategies, and then replicate their trades. Check out copy trading reviews before you sign up.

All of the above will play a key part in your binary options trading training. Free trading videos and examples will help give you an edge over the rest of the market, so utilise them as much as possible.

Trading Journal

There currently exists no binary options university. So, explanations as to why that option didn’t work can be hard to come by. Keeping a journal with all your binary option trading results in could solve that issue. A detailed record of each trade, date, and price will help you hone your strategy and increase future profits.

Whether you keep it an excel document or you use tailor-made software, it could well help you avoid future dangers. As an added bonus, it can make filling in tax returns at the end of the year considerably easier. A journal is one of the best-kept secrets in binary options, so now you know, use one.

Psychology

Trading binary options successfully isn’t just about having the right strategy. If you can’t control your emotions you will make costly mistakes. As Robert Arnott stated, ‘what is comfortable is rarely profitable’. When the pressure kicks in, fear and greed can distract you from the numbers.

You need to accept that losses are part of trading and stick to your strategy anyway. If it’s based on accurate maths and careful technical analysis then you have to keep your faith. As soon as you start acting inconsistently your profits will suffer.

Regional Differences

Regulation

As the popularity of binary options grows across the world, regulatory bodies are rushing to instill order. That means where you trade and the markets you break into can all be governed by different rules and limitations.

If you’re day trading binary options in the UK, for example, you will require a license from the UK gambling commission. If you opt for a broker regulated by the Financial Conduct Authority (FCA), you’ll be guaranteed an extra level of protection. Beware some brokerages register with the FCA, but this is not the same as regulation.

Brexit has brought with it complications to trading regulations. The MiFID II guidelines were set to be implemented across Europe enforcing rules around binaries, however, the UK may not now implement the guidelines. This means the UK is no longer under pressure from Europe to reclassify binaries as financial instruments.

Binary options trading for US citizens is limited by a choice of just two brokers. Nadex and CBOE are the only two licensed options. Fortunately, they are both huge firms offering competitive prices and a range of different assets to trade binaries on.

Rest Of World

In Australia, the Australian Securities and Investments Commission (ASIC) runs the show. If you’re interested in brokers based in Cyprus and Israel, then check they are regulated by CySec. In Dubai and the rest of the UAE, binary options are regulated by the Dubai International Financial Centre (DIFC).

You can also start day trading binary options in Canada, India, Pakistan, South Africa, Malaysia, Kenya, New Zealand, Nigeria, Vietnam, Indonesia, and the Philippines. Each has their own regulatory bodies and different requirements.

So, if you want protection, ensure you do your research before you sign up for a binary broker on the other side of the world.

Taxes

Another important regional distinction comes in the form of taxes. Some countries consider binary options as a form of gambling, such as the UK. This comes with notable benefits. The HMRC will not charge you any taxes on profits made through binary options. However, in the future binaries may fall under the umbrella of financial derivatives and incur tax obligations.

Having said that, if day trading binaries are your only form of income and you consider yourself a full-time trader, then you may be liable to pay income tax. Whilst you are probably still exempt, it is worth seeking clarification.

Outside the UK, tax regulation differs hugely. Binary options in Japan and Germany come with vastly different tax obligations, for example. So, before you start trading seek advice to ascertain whether you’ll be exempt from tax. If not, will you pay income tax, capital gains tax, business tax, and/or any other form of tax?

For more detailed information, see our taxes page.

Can Trading Binary Options Make You Rich?

Although exciting and dynamic, to make a living trading binary options you’ll need to use this page and other sources as guides. Can trading binary options make you rich then? Done correctly, yes it can. There is no question of binary options potential profitably, this is evidenced by numerous millionaires. To get there though, you’ll need the right broker, an effective strategy, and you’ll need to invest in your trading education, by utilising the resources outlined above.

Further Reading

Yes, but regional regulation varies.

In India and Australia for example, binary options are legal.

In the US, binaries are available via Nadex, and perfectly legal.

In the EU, binaries have been withdrawn for retail investors, but it is still possible to trade binary options legally, by professional traders. Certain criteria need to be met in order to be classed as ‘professional’.

Can you trade at weekends?

Yes. There are two ways to trade at weekends. Firstly, forex markets are still open in some parts of the world during the “weekend” in other parts. Binaries can be traded on forex during these times.

There are also ‘synthetic’ markets with some brokers (such as binary.com) but traders should note there is no underlying market with these options. They are ‘virtual’ markets created solely to cater for traders looking to trade anything at all. They are not for sophisticated traders.

Are binary options banned in Europe?

Binary options have been withdrawn for retail traders by the European regulator, ESMA. Brokers not regulated in Europe may still offer binaries to EU clients.

It is also possible for EU traders to nominate themselves as professional traders. This waives their rights to regulatory protection, and means binaries are free to be used again.

Some synthetic markets can also be traded by EU traders, and while the product works exactly as a binary options, they are referred to slightly differently.

Do binary options work on MT4 or MT5?

There are no binary options brokers offering Metatrader integration. It is however, possible to perform technical analysis in MT4 and place trades on a separate trading platform.

Can you use binary options on cryptocurrency?

Yes. The leading binary options brokers will all offer binaries on Cryptocurrencies including Bitcoin, Ethereum and Litecoin. As a derivative, traders will not “own” any cryptocurrency, they will purely be speculating on the price. This does mean however, there is no need for a Crypto wallet or crypto account.

How to Get Started with Binary Options

When you are ready to start trading binary options, Nadex is ready for you. From learning about binary options to opening an account and making your first trade, we strive to keep the process simple and straightforward.

As simple and straightforward as we make it though, as a self-directed trader, in order to provide yourself the best possible chance at success, there are responsibilities that you have as well.

Have you done your research? Markets are constantly moving and shifting. It’s doubtful anyone has ever known everything about every market; however, you need to do your research to understand the basic principles of market movement and what drives any given market.

You need to understand that trading involves risk. Do you understand what your risk tolerance is? What percentage of your account should you risk on any given trade? What is your exit strategy for every trade? These are key concepts to understand in order to get off on the right foot when trading. One additional note on risk, whatever you decide to risk, should be risk capital. Some may even call this “disposable cash”. While you don’t want to dispose of your cash when trading, losses do occur. If you are trying to trade with money earmarked for your car payment or groceries, that is the surest way to lose money.

Make sure you know binary options trading is for you.

Think about the reasons you started trading. Maybe you thought it sounded fun, or exciting, or the rush of following volatile markets just grabbed you.

Chances are, those things are still what you live for when you trade.

Binary options allow you to simplify your trading to those elements while providing exposure to a way of trading that captures market volatility and offers multiple trading opportunities. With all of our unique contracts, you have total control over the risk you take on when you trade.

Trading today moves fast.

These aren’t the markets from years ago when orders were called in and you waited to check prices in the newspaper the next day.

You want opportunities to come fast and for results to come faster.

You want a robust marketplace that is filled with trading opportunities covering all the dynamic markets you love. Nadex binary options offer unique opportunities to take positions with exposure to volatility in both trending and relatively flat markets.

Nadex was built for traders that feel like they do better when they have more trading opportunities to select from. It’s why we want you to have so many choices when you trade.

Binary options are for traders that want the flexibility to convert an idea to a trading position quickly without trying to understand complicated products with confusing risk/reward ratios.

To learn more about how that works, check out the binary options course in our learning center.

We built our binary options to be straightforward and easy to follow for all types of active traders. New traders may enjoy the small contract size which provides access to the markets and the flexibility to trade at a level comfortable to them. Experienced traders may look to binary options to execute dynamic strategies and seize opportunity in all market conditions.

Things to consider when choosing a binary options provider.

The decisions you make about who to trade with are just as important as when you decide the price and direction of each trade. Here is a list of some considerations to make when choosing your binary options provider:

  1. How is the provider regulated and in what jurisdiction? Nadex, for example is regulated in the US by the CFTC
  2. How is your money being held and how easy is it to fund and withdraw?
  3. What is the cost of trading? This includes exchange fees for placing trades, account fees, deposits, data fees, etc.
  4. What markets are available to trade? Do they list a wide range of global markets?
  5. What types of platforms do they offer? Do you need to be stuck in front of a computer or do they allow the flexibility of trading from mobile apps?
  6. What hours are available to trade? Is trading open at a time that is convenient for you and offer flexibility to accommodate your schedule?

Practice binary options trading with a free demo account.

Open a binary options demo account and start practicing binary options trading with us in minutes. It’s quick, free and everything is accessible online.
After you register, we’ll give you unlimited access to practice binary options trading and explore our platform.

That way you can dig into every aspect of trading with us and learn more about the powerful environment we built for short term binary options traders.

Here’s how opening a demo account works:

  • Take a minute and register with your basic information.
  • Your demo account will be up right away. This lets you practice trading binary options in any of our markets in minutes.
  • Enjoy the same flexibility to trade from any device.

We want you to learn more about binary options trading and how everything works at Nadex, so we make it as easy as possible to open a demo account to trade binary options and access our resources.

Open a binary options trading account.

One of the best parts of trading binary options is how simple it is, and we want opening an account to feel the same way.
You can open an account quickly and get started right away trading binary options.

Let’s walk through the process to open an account to trade binary options with us:

  • Take a minute to complete the basic application and upload a few documents.
  • Fund your trading account with a minimum opening balance of $250 using a wire transfer or debit card.
  • Check out the platform and your ability to trade on stock indices, commodities, forex, and more from one secure place.
  • Enjoy your new flexibility to trade binary options across many global markets from any device with the same account.

We will take you through a quick and easy account set up process and then you will be ready to go on our trusted trading platform.

Pick a market and make your first trade.

After you register for an account, you will be ready to trade.

You will discover we offer a robust marketplace where you have many choices of markets, strike prices, and timeframes for trading. We work to do it in a way that makes it simple and easy to get started trading binary options.

When you are ready to make a trade, you’ll want to select a market. Take a look at the different timeframes and strikes, and find one that matches your opinion of what you expect to see happen.

When you choose a market, use our simplified order ticket to place your trade. All the information you need for your trade is there, including a clear look at your maximum risk and reward.

How you manage the market action and your trade is up to you.

Let’s summarize those four steps to placing your first trade:

  1. Choose your market and expiration
  2. Choose your strike
  3. Place your order
  4. Manage your trade until expiration or exit early

How to Start Trading Binary Options

This simple step-by-step guide will help you start trading binary options if you’re still a beginner. Follow the instructions on this page and read our tips carefully, so that you can save your time, money, and nerves.

What This Guide Has to Offer

By following a few simple steps, you will be able to safely start trading binary options. In just 30 or 40 minutes, we’ll guide you through the following:

    Calculating a deposit and investment amount in line with your budget Finding the best binary options broker that suits your needs Singing up with a broker and funding your account Learning to trade through a simple and effective strategy Providing you with the basics of risk management Supplying you with useful tools for future trading

Ready to start? We’ll need only 30 or 40 minutes.

Calculate Your Deposit and Investment Amount

How much are you going to invest? Enter your initial deposit amount, and we will calculate your investment based on the risk management rules.

Expert’s Tip

    Start trading with an amount you are not afraid to lose. This will be your initial investment amount. Follow the risk management rules from the start. This will ensure you won’t blow up your account in terms of hours. Do not trust scam brokers promising any ‘magical systems’ and guaranteeing profits at no risk. This is just scam that will result in a total loss of your account balance.

These details are necessary to calculate your deposit and investment amount based on your risk appetite.

Calculation Methods
  • Calculate your investment amount based on your deposit and your risk appetite
  • Calculate your deposit amount based on your investment and your risk appetite

At the next stage, our system will select reliable brokers based on your deposit and minimum investment amount.

Then, you will be able to safely make your first deposit, once you’ve calculated the amount based on the money management rules.

Finally, you will learn to trade with a simple and effective binary options strategy.

Fill out the form and make the most of this page!

Your deposit and investment amount details exist only while you remain on this page. They will be removed once you close the page. Your information remains private at all times. The owners of this website do not have access to such information.

Calculate Your Deposit and Investment Amount

Select the currency of your deposit, specify the deposit amount, set your risk percentage, and you will get your investment amount.

Calculate your investment amount based on your deposit

If you’ve figured out how much you want to deposit, but do not know what will be your investment amount per trade, follow these steps:

  • Specify your deposit currency
  • Enter your deposit amount
  • Select your risk appetite
  • Click the Calculate button

Calculate your deposit amount based on your investment

In case you know how much you will invest per trade, but cannot figure out the deposit amount you’re comfortable with, follows these steps:

  • Specify your deposit currency
  • Select your risk appetite
  • Modify the deposit amount until you find your desirable investment amount
  • Click the Calculate button

What Is Risk Appetite

Your risk appetite percentage means how much you risk per trade in relation to your deposit. As per the golden money management rule, you should not risk more than 2% of your account balance per trade. We recommend you sticking to this rule at all times.

You are going to start trading binary options with . Your investment amount is . Your risk appetite is %.

Let’s move on and find you a broker!

Open an Account with a Reliable Broker

Sign up and open a trading account with one of our recommended brokers. We’ve selected these brokers based on your initial deposit amount and your investment per trade.

Expert’s Tip

    Open an account only with a regulated broker operating in the market for a long time. Always supply your up to date personal details and primary email address. This will allow you to avoid any future issues related to verifying your account. Explore the broker’s trading platform and sign up for any related webinars.

We recommend only reliable and trusted binary options brokers.

How we select our recommended brokers:
  • Regulated by financial authorities
  • Financial security
  • Positive reputation and feedback among traders
  • Deposit and investment amounts fit your needs
  • Demo account for learning how to trade
  • Top tier customer support

You can feel confident about opening an account with any of these brokers.

Be ready to verify your account by confirming your personal details. All regulated brokers ask you to verify your account, as this is required by law.

Choose a Broker to Open an Account with

These brokers have minimum deposit and investment amount that are in line with your financial needs.

Your Deposit

Your Investment Amount

Risk Percentage

Risk Appetite

Why is regulation so important?

Why do I need to provide my true and up to date personal details?

Can I open a demo account without making a deposit?

Make Your Initial Deposit and Open a Demo Account

Fund your trading account and contact your broker to request a demo account. This will help you learn how the platform works.

Expert’s Tip

    Use your credit card as your deposit method, if that’s an option. You will be withdrawing your earnings to this card later. Once you’ve made a deposit, request a demo account. This is vital! Verify your account by providing the required documents once you’ve made your initial deposit.

Please Note:

    Use your credit card as your deposit method. This will allow you to avoid any future issues related to withdrawals. Request a demo account once you’ve made your deposit. This will help you to explore the platform and test your trading strategy. Make sure to verify your account in the first few days after making your deposit. You will not be able to withdraw your profits before you verify your account. The broker may offer you a welcome bonus of 25% to 100% after you make your initial deposit. See the FAQs section to learn more about bonuses. Ask your account manager to enroll you for all upcoming webinars. You must learn how to trade before you can invest with confidence. Do not start trading until you’ve tested your strategy. Do not invest at random without confirming signals.

Why do you recommend depositing via credit card?

The broker offers me a 100%, should I accept it?

Most brokers will offer you welcome bonuses on your first deposit, ranging from 25% to 100%. This is actually free money, but you won’t be able to withdraw it before you complete the bonus terms and conditions you should check out carefully. Some bonus terms involve trading amounts 40 times bigger than the bonus amount.

Thus, if you deposit $1,000 and get a 100% bonus, you’ve got $2,000 to trade, and the bonus terms are 40x. To withdraw your bonus money and your profits, you’ll then need to make trades with the total amount of $1,000*40=$40,000. Seems to much? Let’s see. Suppose you stick to the 2% rule. With a $2,000 account balance, your investment per trade is $40. So, to reach the required volume, you’ll need to make $40,000/$40=1,000 trades. Even if you’re a very active trader, you’ll be hardly making more than 5 or 6 traders a day. Thus, you will need at least 165 trading days to work off your bonus.

Now you see what it means to accept a bonus. It is up to you whether or not you are okay with trading for a few months without being able to withdraw your earnings. If you are serious about learning how to trade, do take the bonus, as it will significantly boost your initial trading capital.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

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How To Make Money on Binary Options Trading
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